According to CoinGecko data from March 14, XRP's fully diluted valuation (FDV) has surpassed Ethereum. This marks a shift for both layer-1 blockchain networks as XRP Ledger's decentralized finance ecosystem gains traction, while Ethereum faces competition from other projects.
XRP and Ethereum's fully diluted valuation
As of March 14, XRP's fully diluted valuation stood at nearly $235 billion, over $1 billion higher than Ethereum's. However, Ethereum's market capitalization still leads at $233 billion versus XRP's $136 billion. FDV measures the cumulative value of all existing tokens, while market capitalization accounts only for tokens already in circulation. XRP's developer, Ripple Labs, holds a significant portion of its own tokens.
Changes in the cryptocurrency market
Since Donald Trump's election victory on November 5, XRP's price has risen by more than 300%, reaching around $2.3 per token. Trump has reportedly aimed to make the U.S. the 'world's crypto capital' and appointed industry-friendly leaders to key regulatory positions. The favorable regulatory environment is particularly beneficial for XRP, which targets enterprise users and unveiled an institutional DeFi roadmap in February.
Regulatory conditions for XRP and Ethereum
As of January, XRP's decentralized exchange (DEX) has handled over $1 billion in swap transactions since its launch in 2024. Further support for XRP came when Trump announced plans to include XRP in a proposed U.S. Digital Asset Stockpile alongside other cryptocurrencies such as Solana and Cardano. Meanwhile, Ethereum has struggled since the network's Dencun upgrade in March 2024, which reduced transaction fees by approximately 95%. Solana's transaction volume, focusing on fast execution, rivals that of Ethereum and all its layer-2 chains combined.
The cryptocurrency market continues to evolve as XRP's position strengthens under new regulatory conditions, whereas Ethereum faces competition from other blockchains.
